Among calls to Financial Finesse’s help line, retirement planning questions accounted for 31% of the total in 2011, compared with 24% in 2010. Retirement planning was followed by debt management (14%), investing (14%) and budgeting and saving (13%) as the top areas of concern. In total, 62% of questions were related to long-term planning issues (compared with 55% in 2010).
Despite the increased focus on retirement planning, retirement preparedness remains unchanged from 2010 as only 17% of employees indicated they are on track to replace 80% of their current income (or their own goal).
In 2011, employees reported reduced financial stress, with 19% indicating “high” or “overwhelming” levels of stress compared with 32% in 2010 and 33% in 2009. However, financial stress still remains a pervasive problem with 84% of employees reporting some level of financial stress.
Ninety-two percent of employees said they contribute to an employer-sponsored retirement plan, such as a 401(k), 457 or 403(b). Thirty-six percent feel confident that their investments are allocated appropriately.
The Financial Finesse 2011 Research Year in Review report can be downloaded from http://www.financialfinesse.com/research-best-practices/.